Boyd Gaming (BYD) Q1 Earnings Top Estimates, Increase Y/Y

Boyd Gaming Corporation BYD reported solid first-quarter 2022 results, with earnings and revenues beating the Zacks Consensus Estimate and rising year over year. Both the metrics surpassed their respective consensus mark for the eighth straight quarter.

President and CEO of Boyd Gaming, Keith Smith, stated, “During the quarter, strong performance from our core customers and sustained efficiencies in our marketing and operations contributed to record revenue, EBITDAR and margin performances on a Companywide basis.”

Following the solid results, shares of the company moved up 4.3% during the after-hours trading session on Apr 26.

Earnings and Revenues

In the quarter under review, adjusted earnings per share (EPS) were $1.40, outpacing the Zacks Consensus Estimate of $1.24 by 12.9%. The metric increased from 93 cents reported in the prior-year quarter.

Boyd Gaming Corporation Price, Consensus and EPS Surprise

Boyd Gaming Corporation Price, Consensus and EPS Surprise

Boyd Gaming Corporation price-consensus-eps-surprise-chart | Boyd Gaming Corporation Quote

Total revenues of $860.7 million beat the consensus mark of $835 million by 2.9%. The top line increased 14.3% on a year-over-year basis. The upside was primarily backed by a streamlined cost structure, improved visitation and solid customer trends (rated guest counts, frequency and spending).

Total adjusted EBITDAR during the reported quarter amounted to $338.8 million compared with $292.6 million reported in the prior-year quarter. Companywide adjusted EBITDAR margins (after corporate expenses) came in at 39.4%, up from 38.8% reported in the year-ago quarter.

Segmental Detail

Las Vegas Locals

During first-quarter 2022, revenues in the segment amounted to $227.6 million, up 24.7% year over year. The segment’s adjusted EBITDAR totaled $118.7 million, up 30.9% from $90.6 million reported in the year-ago quarter’s levels.

Downtown Las Vegas

During the quarter, revenues in the segment rallied 130.9% from the prior-year quarter’s figure to $49.5 million. Adjusted EBITDAR was $18.4 million compared with $2.4 million reported in the year-ago quarter.

Midwest and South Segment

During the first quarter, revenues in the segment increased 6.2% year over year to $583.7 million. Adjusted EBITDAR amounted to $223.5 million, up 2.4% from $218.1 million reported in the year-ago quarter.

Operating Highlights

During first-quarter 2022, the company’s total operating costs and expenses came in at $609.7 million compared with $559.6 million reported in the year-ago quarter. During the quarter, selling, distribution and administration expenses came in at $92 million compared with $90 million reported in the prior-year quarter.

Balance Sheet

As of Mar 31, 2022, the company had cash on hand of $403 million compared with $344.6 million as of Dec 31, 2021. Total debt during first-quarter 2022 amounted to $3.1 billion, in line with the previous quarter’s levels.

During the quarter, the company repurchased $132 million worth of stock under its authorized $300 million repurchase program. As of Mar 31, the company stated the availability of approximately $149 million under its repurchase program.

The company announced a hike in its quarterly dividend payout. Boyd Gaming raised its quarterly dividend by 114.3%, indicating its intention to utilize free cash for boosting shareholders’ returns. The company raised the quarterly dividend to 15 cents per share (or 90 cents annually) from the previous payout of 7 cents (or 28 cents annually). The hiked dividend will be paid out on Apr 15, 2022, to shareholders on record as of Mar 15, 2022.

Other Updates

During the quarter, the company announced the acquisition of Pala Interactive to boost its online gaming strategy. Backed by the latter’s technology (featuring a player account management system and iGaming products) as well as its operational and marketing expertise, the initiative allows the company to advance its position with respect to the emerging iGaming opportunity. The company anticipates closing the deal by first-quarter 2023.

Zacks Rank & Key Picks

Boyd Gaming currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Funko, Inc. FNKO, Bluegreen Vacations Holding Corporation BVH and Clarus Corporation CLAR.

Funko sports a Zacks Rank #1 at present. FNKO has a trailing four-quarter earnings surprise of 96.2%, on average. Shares of the company have declined 24.9% in the past year.

The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 22.6% and 26.8%, respectively, from the year-ago period’s reported levels.

Bluegreen Vacations sports a Zacks Rank #1 at present. BVH has a trailing four-quarter earnings surprise of 425.1%, on average. The stock has increased 35.2% in the past year.

The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s reported levels.

Clarus carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 12.3%, on average. Shares of the company have increased 5.2% in the past year.

The Zacks Consensus Estimate for CLAR’s 2022 sales and EPS suggests growth of 25.3% and 23.1%, respectively, from the year-ago period’s levels.

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